Nonprofits called boon to economy

They feed the hungry and teach the three R's. They bathe the sick and spread the Good Word.

Maryland's nonprofit organizations -- churches, hospitals, museums, soup kitchens -- benefit from this do-good image, but they also do more, a new study says.

They not only feed the hungry; they also feed the economy.

"The importance of the sector goes far beyond the good work of these organizations. Maryland's nonprofit sector is also a major economic force," said Peter V. Berns, executive director of the Maryland Association of Nonprofit Organizations, which is scheduled to release the study today on the state's nonprofit sector.

"Partnership Principles," developed by the Nonprofit Policy Agenda Working Group, outlines how nonprofits contribute to the state economy and recommends six ways state government should foster a better business climate for nonprofits.

The Working Group, a group of 40 state nonprofit leaders, spent a year studying the relationship between the government and nonprofits.

According to the report:

* Maryland's 12,000 nonprofits pour an estimated $6 billion a year into the state economy.

* They represented 6.5 percent of the gross state product in 1989, the most recent year for which specific data is available.

* More than 180,000 Marylanders, or 7.3 percent of employed adults, worked for nonprofits in 1990, according to U.S. Census data.

Just as for-profit companies trade on their economic clout turge state governments to develop policies considered friendly to business, so do Maryland's nonprofits.

But they also need technical assistance and financing, just like for-profit businesses.

"We have a lot in our favor. If the next governor were to proclaim that he wanted to make Maryland an international center for nonprofits and were to pursue policies to further growth, we would be in a good postion to achieve it," Mr. Berns said.

MARYLAND'S NONPROFITS

Maryland's 12,000 nonprofits pour an estimated $6 billion a year into the state economy. Here is a breakdown of those organizations by sector, with the remainder serving other segments.